David Cameron suggests compromise on Gary McKinnon to Barack Obama

David Cameron has suggested to President Barack Obama that Gary McKinnon, the Briton accused of hacking into Pentagon computers, could serve some of his sentence in Britain as part of a compromise deal.

Speaking in Washington after meeting the US president, he said: "That is one potential outcome and I'll be working very hard to make sure that these things are discussed between the two governments."

Mr Obama had earlier said he hoped a deal could be reached in the long-running case of Mr McKinnon, who suffers from Asperger's syndrome.

"Work has been going on to try and see if there isn't some way of dealing with this case where perhaps the sentences given in America that some of the - if there is a prison sentence - is served in a British prison," Mr Cameron told the BBC's Radio 5Live.

However, Mr Obama said he could not interfere directly in the case and warned that the issue must be "resolved in a way that underscores the seriousness of the issue".

Mr Obama said: "One of the traditions we have is that the President doesn't get involved in decisions around prosecutions, extradition matters.

"So what I expect is my team will follow the law, but they will also co-ordinate closely with what we have just stated is an ally that is unparalleled in terms of our co-operative relationship.

"I trust that this will get resolved in a way that underscores the seriousness of the issue, but also underscores the fact that we work together, we can find an appropriate solution." Mr Cameron said he understood that Mr McKinnon was accused of a "very important and significant crime" but said he hoped "a way through" could be found.

Mr McKinnon was accused in 2002 of using his home computer to hack into 97 American military and Nasa computers, causing damage that the US government claims will cost more than $700,000 dollars (£425,000) to repair.

He admits breaching the systems but denies causing damage and claims he was looking for evidence of UFOs. If he is found guilty he faces spending years in prison.

Mr McKinnon suffers from Asperger's syndrome and Nick Clegg, the deputy Prime Minister, has previously campaigned to prevent his extradition.

Theresa May, the Home Secretary, has temporarily halted his removal from Britain while she studies the case.

Mr McKinnon's extradition was ordered by the courts under a controversial treaty agreed between Britain and America in 2003. In opposition, the Conservatives alleged that the treaty was unfair and one-sided.

The Coalition has pledged to review the arrangements and is set to appoint a judge or other judicial figure to study the treaty.

The Daily Telegraph disclosed last week that the American Government is likely to block any attempt to review the treaty. US officials say that they believe the treaty is "fair" and works well.

However, it now appears that the US may be prepared to compromise in the case of Mr McKinnon.